The most recent evidence is a deal that DaimlerChrysler’s Jeep
signed with Rainbow’s VOD sports instruction channel, Sportskool, that network
officials say is worth near mid-six figures.

The deal, which was cut with Jeep’s planning agency, PHD
Detroit, will see Jeep sponsor four months of action sports programs on the VOD
channel, including BMX, skateboarding, snowboarding, skiing and streetball. The
customized campaign deal went into effect this month and ends in June.

“This is a real commitment from Jeep for our video-on-demand
environment,” said Dan Ronayne, general manager of Sportskool. “This also
presents an opportunity for us to integrate a broad ad plan beyond 30-second
preroll spots.”

The Jeep deal, which involves both 15-second preroll spots
before the instructional video and brand integration within the video, marks
the first big sponsorship deal signed for the VOD channel.

Jeep will sponsor graphics and pop-ups, and its Patriot
vehicle will be integrated into four short films about skateboarder Mike
Vallely, known as Mike V.

Sportskool said it is two months away from signing a similar
deal with a beverage brand for its team sports instruction videos.

“The Jeep deal really points to the direction we’re headed
with this,” Ronayne said. “We headed to a point where we create a business
driven by ad sales and sponsorships.”

Sportskool executives are convinced that deals such as this
will become more commonplace, with advertisers changing their perception in the
last six to eight months.

“The numbers, obviously, are much smaller than broadcast,”
Ronayne said. “But the quality of our viewers — especially given the media
market’s fragmentation — means that on-demand is a real value for advertisers.”

The action sports buy makes sense for Jeep, which is targeting
the 18-24-year-old demographic for its Jeep Patriot, which costs about $15,000.
Action sports have proved to be among the highest-rated shows on Sportskool, in
part because it hits a younger, more technically literate viewer.

“They came to us with an interest in action sports
programming,” said Phil Summers, vice president of integrated sales and
marketing for Sportskool.

Jeep rolled back some of the more open sales pitches, such as
spots detailing the advantages of its vehicles. Instead, it wanted to integrate
its brand in spots that talked about the culture of action sports.

“They wanted to get their point across without hitting someone
over the head with it,” Ronayne said.

Sportskool launched in 2004. It’s currently in 24 million
homes, thanks to carriage deals with most of the country’s biggest cable
operators — Comcast, Time Warner, Charter, Cablevision, Insight and Mediacom.

It offers instructional videos starring some of the biggest
stars in sports, such as Tony Gwynn on baseball, Bill Walton on basketball and
Bode Miller on skiing.